Looks like the Bush tax cut will pass congress and its really good news for traders.

The capital gains tax will be lowered to 15%, so thats great for us 60/40 future traders.

Plus top income tax level goes down to 35% starting next year. Those few percentage points are huge.

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Could you be more specific about that. Are you saying that even short-term cap gains would be taxed at 15% ? If that is so, I find it hard to believe...but it would be utterly fantastic if it were true. Really, I'm quite sure it only applies to long term cap gains.

Futures, by their very nature, are short term investments because they have expiration dates and cannot be held for a year or more like stocks.

Also, can anyone verify if it's true that the 60/40 tax treatment of futures gains has been repealed, or is about to be repealed?

Thx.

Sounds to me like congress and the president want to curtail short term trading and encourage long term investing in the stock market. But in doing so, we the full-time traders who make our livings from trading the markets are getting screwed.

I would applaud the 15% cap gains rule. That is how it used to be. It encourages investment in our country. I intend to derive more than half my gains from long term investing by next year anyway.

This means that if you can make 100% scalping, you are actually making only 65%. If you can make 76.5% investing, you are just as well off, and you are taking much less risk. It sounds to me like it is easier to just buy great companies and hit the beach.